'84 Chronology-Sticky Situation

Event Date: May 24th, 1984

Event Description: Creditors Pursue Blitz

Source: United Press International

Angry creditors who are owed a total of $1.8 million by the ownerless Chicago Blitz have threatened to block Eddie Einhorn's attempt to purchase a U.S. Football League franchise.

“If the (USFL) commissioner or the owners do not acknowledge by Friday and arrange for payment of 100 cents on the dollar, we will take whatever action we deem necessary,” said Robert Chatz, spokesman for the 40 creditors.

The Blitz creditors met Tuesday to discuss ways to seek the $1.8 million owed them. The creditors demanded payment of the unpaid bills by Friday.

“The general consensus is that if Einhorn takes over the team, that's not to the advantage of any of the creditors,” said John Joyce, a vice president of the advertising firm of Bentley, Barnes and Lynn, the Blitz' largest creditor.

If the Friday deadline is not met, Chatz said the group would consider 

suing the USFL, which took over operations of the Blitz when former owner Dr. James Hoffman of Milwaukee bailed out of the franchise last winter.

Einhorn, a co-owner of the Chicago White Sox, was expected to continue his bid to acquire a USFL franchise, but no new developments occurred.

“What's difficult to understand is how Eddie Einhorn can get involved in something like this,” said Same Conforti, a controller for Bentley, Barnes and Lynn who was selected to act as chairman of a committee set up by the creditors to explore ways to get their money back.

The creditors, representing a variety of businesses, including radio and television stations, newspapers and advertising agencies, have sought and received permission to inspect the club's financial records before Friday.

New York attorney William McSherry Jr. said the league does not know where the money is going to come from to operate the Blitz for the remainder of the season.

“We're trying to get somebody to put up a pot of money but the situation has changed dramatically,” he said. “At the present time, it does not appear that a buyer will be found who will assume the liability of the past.”

Story-(UPI)